8 tips to maximize your vacation rental income

It feels good to share your lake house, beachside bungalow or ski cabin with other people, but it feels even better to earn as much as you can while doing so. Even if your vacation rental is providing you with a steady side income, there are still lots of ways to increase revenue while improving the overall guest experience. KSL Classifieds has the tips you need to get the most out of your short-term rental property. 

1. Create a quality listing

The better your listing, the better chance you have of grabbing people’s attention and getting them to book with you instead of a competitor. There are a lot of factors that go into creating a good listing (you could fill a whole article with tips), but when you boil it down to the basics, you’ll need an engaging description and great photos. For photos, make sure you have the most important rooms on display. No one likes surprises when it comes to bathrooms, bedrooms, kitchens or living areas. Try to take photos during the sunniest part of the day, with as much natural light as possible. And if there are any great add-ons and amenities, like a hot tub or pool, be sure to include those as well.

When it comes to descriptions, colorful language is your friend. A “breezy beachside cabana just steps from downtown” is a little more inviting than a “timeshare for rent.” Mention major nearby attractions in your title, important details about the property in your description and be sure to sprinkle in some of what you love about it too.

2. Use dynamic pricing tools to set your rate

Seasonal travel, competitor pricing and monthly expenses are just a few things to consider when setting your rates, but there are plenty more factors that go into this tricky equation. You can figure it all out yourself or pick out a dynamic pricing tool to do it for you.

Dynamic pricing tools analyze hundreds of data points to determine the best rates to charge on a given night. A few of the many things analyzed include:

• Current and seasonal demand

• Time of year

• Holidays

• Booking window trends

• Popular events nearby

• Prices of competitors

Even if you don’t follow your pricing tool’s advice to a T, you’ll still have a faster, clearer picture of the local market than if you went it alone. With a dynamic pricing tool, you’ll also be able to see changes in demand happen in real time and stay ahead of the curve.

3. Keep your listings updated

Creating a good listing is one thing, but maintaining a good listing is another. As you adjust your rates throughout the year, you should also update your listing’s content. That means changing the photos and descriptions to match the season and type of guests you want to attract. Remember that a good listing helps guests imagine themselves on vacation in your rental. Photos of your Park City cabin after a fresh snowfall will be much more attractive in the winter than those pics you took last summer.

4. Upsell perks and add-ons

Giving guests the option to pay for more perks and services is a simple way to earn more. If you live near your property, those perks can be as involved as airport pickups, day trip transportation and grocery deliveries. If you’re not local, offering early check-ins and late check-outs is an easy way to make a bit of extra cash from far away. You can also get creative and charge for a welcome basket with food, drinks and goods from local businesses, or partner with those businesses to offer discounts for your guests. And in an outdoor mecca like Utah, you can always rent out bikes, skis, UTVs and other recreational equipment. 

5. Encourage long-term stays

Just like late check-outs and early check-ins are easy ways to earn extra money, encouraging longer stays provides a passive way to reduce expenses and increase profit. Longer stays save you time and money by reducing cleaning fees and eliminating the stress of coordinating with new guests. And in the age of remote work and “digital nomads,” there’s more demand than ever for multi-week rentals. Even though you’ll probably have to incentivize guests through lower rates, you’ll likely make more money in the end. This strategy is especially useful in your off-season, when you may be struggling to fill vacant dates. You can also reach out to current guests and offer a longer stay if there’s an upcoming vacancy. The goal is to have your rental filled as often as possible, and longer stays accomplish that while keeping incidental costs lower.

6. Guest-proof your house (and get insurance while you’re at it)

Keep your maintenance and repair costs low by “guest-proofing” your property. If you’re willing to make minor renovations, things like scratch-resistant and waterproof flooring can go a long way toward maintaining the value of your property. Semi-gloss or glossy paint also makes it easy to wipe away scuffs and marks, and minor additions like door stoppers and sturdy furniture can help reduce wear and tear.

You can also explore options for short-term rental insurance. These policies are specifically designed to cover your home while it’s being rented. This will often cover damages to the property itself, but it also usually keeps you financially covered if a guest injures themselves, damages someone else’s property or steals something from your property. Sure, it’s an added fee upfront, but lawsuits and major property damage will cost you a whole lot more. 

7. Maximize tax savings

Another way to maximize your short-term rental earnings is by leveraging some of the tax deductions available to rental property owners. Some of the expenses you may be able to write off include: 

• Mortgage interest

• Property taxes

• Insurance premiums

• Depreciation

• Maintenance and repairs

• Legal and professional fees

• Certain travel costs (if you live far from your rental)

Your situation may vary, and you should absolutely talk to a tax professional about which, if any, deductions apply to your situation. But if you do it right, you can cut back on some key expenses and maximize your earnings. 

8. Provide an awesome guest experience

Finally, the best way to get the most out of your vacation rental is to provide the best guest experience possible. Great experiences mean more repeat bookings and referrals to friends and family, which means a steady stream of happy guests for you. Taking care of your property, providing good communication and quick response times, creating a curated guestbook with recommendations in the area and offering upsell perks are all great ways to deliver an awesome guest experience.

When in doubt, go above and beyond whenever possible and your property will be sure to stand out, leading to more guests and more revenue from your property. Another way to stand out? Listing on KSL Classifieds. We’ve recently made changes to reduce repeat and fraudulent listings to help legit listings like yours get noticed faster. Our nominal, one-time listing fee is also less than the charges imposed by national competitors.

List your vacation rental on KSL Classifieds today.